Mkventures Capital consolidated PAT sinks 79% YoY on one-off ₹2.92 Cr loan impairment
PAT -79.2% YoY · revenue +2.97% · margins compressing
₹6.21 Cr
+2.97% YoY
₹0.89 Cr
-79.2% YoY
14.2%
-51.3pp YoY
₹2.32
Mkventures Capital, a small NBFC split between a Loan & Investment book and a Consultancy division, posted consolidated Q1 FY27 (quarter ended June 30, 2026) revenue of ₹6.21 Cr, up 2.97% YoY, but PAT of ₹0.89 Cr, down 79.2% YoY from ₹4.29 Cr. The entire swing traces to a ₹2.92 Cr impairment provision on financial instruments booked this quarter against the Loans & Investment book — a charge absent in both Q1FY26 and Q4FY26 — which flipped that segment from a ₹3.15 Cr profit a year ago to a ₹1.07 Cr loss. Adding the impairment back, adjusted PAT is roughly ₹3.81 Cr, about 11% below the year-ago quarter — a far steadier underlying picture than the reported 79% collapse implies. NPM compressed to 14.2% from 65.5% YoY (and from 19.7% QoQ); OPM (PBT/revenue from operations) fell to 35.0% from 91.8% YoY, though it actually improved sequentially from 28.6% in Q4FY26, helped by the Consultancy division growing revenue and profit to ₹4.65 Cr from ₹2.90 Cr a year ago, which cushioned the lending-side hit.
Q1 FY-2027 vs prior quarters
The company carries no analyst coverage and no published street estimates were found (web search), and management has issued no formal guidance or outlook on record, so vsStreet and vsGuidance are both unknown; there is also no prior concall on record to check tone against. The filing itself carries no separate management commentary beyond standard Ind AS 34 notes on segment reporting and prior-period regrouping. The quarter's other corporate action — the May 28, 2026 board meeting that appointed Ajay Shah as MD & CEO and approved a ₹0.25/share interim FY26 dividend — predates this filing and is unrelated to the impairment charge. Capital adequacy stays very high for the lending book, with CRAR at 76.98% (Tier I 76.66%), underscoring that this is a thinly capitalised, low-scale NBFC where a single provisioning call can swing reported profit sharply from one quarter to the next.
The stock went into the print at ₹1,144, down 3.6% over the past month of trading.
For context: revenue is at a 6-quarter high.
What the summary numbers don't show
QoQ, PAT rose 88.7% and revenue rose 172.3% off a low Q4FY26 base (₹0.47 Cr PAT) — not comparable to the YoY trend and not the real story this quarter.
Consolidated basic EPS was ₹2.32 vs ₹11.16 a year ago — standalone PAT was ₹1.16 Cr with EPS ₹3.01.
W1
Whether the ₹2.92 Cr impairment on financial instruments proves a one-off or recurs — track the Loans & Investment segment result and impairment line next quarter.
W2
Consultancy division momentum (₹4.65 Cr revenue this quarter, up from ₹2.90 Cr YoY) — check if this pace sustains as it is now the primary profit driver.
W3
NPM/OPM trajectory — whether margins recover toward the ~65-92% YoY base or stabilize near this quarter's 14-35% range.
Unaudited (limited review only); consolidated adds wholly-owned subsidiary Destination Properties and is primary — standalone and consolidated tell nearly identical stories, no material divergence. The ₹2.92 Cr (₹291.63 Lakh) impairment on financial instruments is the sole driver of the YoY PAT decline; no other exceptional items.